Why are the retailers, both big and small, are disappointing the Wall Street nowadays? What is going wrong and how to fix it? What is missing in American commerce?

1. Where Have All The Shoppers Gone
Why are the retailers, both big and small, are disappointing the Wall Street nowadays? What is going wrong and how to fix it? What is missing in American commerce?
The single-handed nation, that was driving the world‟s largest economy for decades by its passion of the outsized consumption, addiction to shopping malls, supermarkets, now appears to be draining with rapidity. Experts are worrying that the whole of the retail sector is shifting towards a fundamental decline from years of slow to stagnant growth. Is it because the long going Americans, who love affair with shopping, are finally on the rocks? At the time when retailers were expecting the bonanza on the ever-expanding holiday seasons, they ended up giving explanations of lackluster results to the Wall Street. According to industry executives and analysts, the reasons behind this malaise can be unrestrained addiction to discounts and promotions, ceaseless economic instability, too much store space for the existing population etc.
To have a better understanding of the evolution of business, the following four major trends are identified along with the plausible solutions:

2. Problem No. 1: Death by Discount
In order to satisfy the shopper‟s primal desire to bargain, one of the oldest strategies is adopted by offering an artificial price to them which is slightly lower than the retail price. But analysts say that the things have gone way out of control over the past few decades. Discounting has now become the expectation of customers rather than just a bonus, thus making the retailers fall into their trap. This ever-increasing price competition and discounts lead to price deflation that lowers the standard transaction value. Now to stay even, retailers need to sell more products. This phenomenon is spurred mainly due to the ability of shoppers to compare prices online.
The off-price retailers are the most beneficial class of this discount trend that sell home goods and designer fashion at lower costs than what customers usually find at specialty or departmental stores.
Solution: End the race to the bottom
Finding the simplest way out of the discount entice has been fugitive. One solution can be abruptly ending the sale pricing in the favor of “everyday low pricing” . The sole problem with this solution is if you are the only one in the line to change things, it will not work.

3. Problem No. 2: Too much space
Building a huge super-center is a no-fail concept. What all is needed is just to pick up a cheap real estate location with a large close living population, now build up a gigantic box with an enormous offer of shelf space, and you are good to go. However, the era of this megastore dominance is now coming to an end. The primary principle of US retailers of building “more and bigger” is proving to be in a funk. Given the ease and benefit of buying anything from a hair clip to an entire cupboard online, it just adds up to empty parking lots.
Solution: Shrink to grow
The main motive of any public company is to grow its business actively, right? But this does not mean opening more and more stores. Instead, this capital can be efficiently put to use in improving the existing stores and constructing their better online presence.

4. Problem No. 3: Stunted Evolution
The only trend that is very crystal clear in this evolution of business is that the online sales will continue to blow. Virtually, just about the every retail merchant participates in the e-commerce sales, not all of them have a go at it well. And, therefore, a growing portion of overall sales goes to the retailers with no physical stores. The e-shopping experiences also influence the shopping habits in some other ways too. Even if a customer decides to buy something from a store, they often do online research first and straight away buys the item there only. This leads to a reduction in spontaneous purchases and harms merchants with not nice inventory controls.
Solution: Blending old with new
Having a salad and a glass of champagne online is practically impossible. So, here is our solution. Some „A‟ mall operators have identified this idea well enough and now are adding the new features to their malls apart from just shopping like gyms, restaurants, bars, etc.
So, this is the high time for the retailers to realize that the classical shopping trend no longer exists. But, people have not stopped wanting the things and they never will. Hence, there is still hope.

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